Challenger Limited · ASX:CGF
Challenger — Investor Presentation (February 2026)
29 slides from Challenger's investor presentation, Feb 17, 2026
Slide 1: Financial Results 1H26
Financial Results 1H26 17 February 2026 challenger £2 Life. Well ved.
Slide 2: Acknowledgement of country
Acknowledgement of country Challenger acknowledges the Traditional Owners of Country throughout Australia and we pay our respects to Elders past and present. We recognise the continuing connection that Aboriginal and Torres Strait Islander peoples have to this land and acknowledge their unique and r
Slide 3: Overview
1 Business and strategy update Nick Hamilton – Managing Director and Chief Executive Officer Overview 2 Financial results and outlook Alex Bell – Chief Financial Officer 3 Looking ahead Nick Hamilton – Managing Director and Chief Executive Officer
Slide 4: Business and strategy update
1 Business and strategy update Nick Hamilton Managing Director & Chief Executive Officer
Slide 5: Key points
01 02 03 Key Financial strength – driving returns for Capital flexibility – strongly capitalised with Enabling growth – winning key retirement points shareholders, operational excess liquidity, dividend partnerships, integrating efficiency, gains across growth and $150m with advice technology all in
Slide 6: 1H26 financial performance
1H26 financial performance Driving value for shareholders F I N AN C I AL P E R F O R M AN C E S H AR E H O L D E R O U T C O M E S C AP I TAL F L E X I B I L I T Y 33.3cps 11.4% 1.58x Normalised EPS Normalised ROE1 CLC PCA Ratio2 2% Above FY26 target 0.03x $ 339m 15.5cps $ 4.7bn Statutory NPAT Inte
Slide 7: Growing demand for income and financial security
Growing demand for income and financial security Tailwinds to support growth WORLD CLASS AGEING GROWING DEMAND OFFSHORE SAVINGS SYSTEM POPULATION FOR INCOME OPPORTUNITIES $ 4.5 tr 780 per day $ 35 bn > 35 % Assets in Australians Yearly net flows into Australian Fixed South Korea, Hong Kong and Japan
Slide 8: Challenger’s competitive advantages
Challenger’s competitive advantages Using our advantages to shape the retirement system with our partners and drive future growth Competitive advantages 1H26 Progress Award winning products Longer dated sales +12% Customer Trusted retirement brand and offering innovation Customer uplift – ALIP1 live
Slide 9: Financial results and outlook
2 Financial results and outlook Alex Bell Chief Financial Officer
Slide 10: 1H26 financial performance
1H26 financial performance Disciplined execution | Strong statutory NPAT performance Profitability Returns Normalised EPS (cps) Net Profit After Tax ($m) Normalised ROE after tax Dividend 33.3 cps +2% Normalised NPAT Statutory NPAT 11.4% +70 bps above target1 15.5 cps +7% $229m +2% $339m +369% 339 1
Slide 11: Earnings drivers
Earnings drivers Operational efficiency driving earnings growth Income Expenses Cost to Income Ratio $487m +1% $154m stable 31.7% -30bps Corporate 482 487 other income $2m 32.0% 95 97 31.7% FM net fee income $154m $154m Outperforming cost to ($2m) income target Life normalised 32% to 34% cash operat
Slide 12: Life performance
Life performance Delivering reliable spread earnings in a tight credit spread environment N o r m a l i s e d N PAT Normalised ROE 1H26 1H26 v 1H25 $226m +1% 12.7% -30 bps Normalised Cash Operating Earnings (COE) $389m 1% Expenses ($61m) 3% 13.0% 12.7% Normalised NPBT $327m –% 225 226 Normalised Tax
Slide 13: Life COE margin
Life COE margin COE margin an outworking of tight credit spread environment and higher allocation to liquids | New business meeting or exceed ROE target Domestic RMBS ‘A’ CLO ‘BBB’ Corporate ‘A’ & ‘BBB’ spreads1 spreads2 spreads3 Margins 1H26 1H26 v 1H25 Investment yield 6.28% -39 bps 8% 8% 8% Other
Slide 14: Life sales
Life sales Strong book growth driven by annuities | Continued momentum in longer duration sales Strong 1H26 Life Longer duration Sales performance sales annuity sales +11% +12% 5.1bn 7.4% $5.1bn $1.4bn $ 11% $4.6bn $1.2bn $1.3bn Total Life Annuity book sales growth1 $1.7bn $0.7bn $0.6bn 0.7bn 0.7bn
Slide 15: Life investment portfolio
Life investment portfolio Positive asset experience across all asset classes | Balance sheet growth driven by strong Life book growth 1H26 Performance by asset class Life investment assets3 Annualised, pre-tax $26.5bn +4% 17.6% FIXED INCOME 74%, - • Holding more liquid assets $3.3bn cash & 9.9% 10.0
Slide 16: Funds Management performance
Funds Management performance Earnings growth driven by operational efficiencies N o r m a l i s e d N PAT Av e r a g e F U M 1H26 1H26 v 1H25 $29m +7% $ 11 2 bn - 7 % FUM-based income & transaction fees $96m 8% Net income +2% Fidante $94bn -8% Performance fees $1m (80%) Expenses -5% Challenger IM $1
Slide 17: Fidante
Fidante Expanding alternatives offering Market Expanding alternative Funds leader offering Under Management Total net flows $1.5bn Institutional net flows $2.7bn One of the largest active Added to $10.1bn $1.0bn $98.0bn managers1 affiliate platform $95.5bn ($4.3bn) $0.1bn $0.5bn 83% 15bn ($5.0bn) $
Slide 18: Challenger Investment Management
Challenger Investment Management Product innovation and growing investment capability Challenger IM Challenger IM Fixed Income Portfolio1 Third Party Funds’ FUM $ 5.9bn $ 2.5bn 38% Deployed Private credit 4-year investments originations CAGR $3.1bn $17.4bn Private opportunities 13% $16.3bn Asset Bac
Slide 19: Capital and liquidity strength
Capital and liquidity strength Strongly capitalised with available liquidity to capitalise on changing market conditions A+ / A- $ 4.7bn 1.58x CLC/Challenger S&P credit rating Regulatory capital CLC PCA with a stable outlook base Ratio1,2 Upgraded 5% 0.03x $ 3.3bn $ 1.7bn 1.19x Cash and cash Excess
Slide 20: Disciplined capital management
Disciplined capital management Focusing on maximising shareholder returns 5.8% Life book growth ORGANIC GROWTH Investment in scalable platforms – customer Invest in core businesses technology uplift and investment operations Expand offshore reinsurance platform DIVIDENDS 15.5c interim dividend (up 7
Slide 21: APRA capital standard changes
APRA capital standard changes A reminder of what to expect on Day 1 PCA Ratio – Current standards Pro forma PCA ratio – Proposed standards1 CLC total regulatory capital Current tight spread environment CET1 stable as Standard ILP approach applies due to tight 1.74x credit spread environment and risk
Slide 22: APRA capital standard changes
APRA capital standard changes What to expect over time – building blocks of shareholder value Normalised ROE Directional change in building blocks of 1H26 target2 RETURN BY shareholder value ASS ET CLASS1 Spread income Low volatility and steady growth Fixed Income Real Estate Alternatives Equity & I
Slide 23: FY26 guidance and targets
FY26 guidance and targets Reaffirming earnings guidance and targets under current prudential settings Normalised Basic EPS guidance Consistent through the cycle targets RBA cash rate +12% Normalised ROE after tax1 66cps to 72cps Cost to income ratio 32% to 34% On track to achieve FY26 guidance with
Slide 24: Looking ahead
3 Looking ahead Nick Hamilton Managing Director & Chief Executive Officer
Slide 25: Key priorities
Challenger’s competitive advantages Key priorities In-platform annuity integrations live Customer innovation Customer portals and APIs live Continue growing long duration sales Execute announced retirement partnerships Distribution Support Iress Xplan retirement tools launch Expand MS Primary reinsu
Slide 26: Key points
01 02 03 Key Financial strength – driving returns for Capital flexibility – strongly capitalised with Enabling growth – winning key retirement points shareholders, operational excess liquidity, dividend partnerships, integrating efficiency, gains across growth and $150m with advice technology all in
Slide 27: Appendix A
Appendix A challenger 43
Slide 28: Assumed application of draft capital standards
Assumed application of draft capital standards As at 31 December 2025 IMPACTS Item Comment Standard Illiquidity Premium Illiquidity Premium: 0.25% (Yrs 0-10); 0.20% (Yr 10+) Advanced Illiquidity Premium Bloomberg US Corporate Statistics Index (LUACSTAT) Reference Index Credit spread = 0.78% Long-ter
Slide 29: Important note
IMPORTANT NOTE The material in this presentation is general background information about Challenger Limited This document may contain certain ‘forward-looking statements’. The words ‘forecast’, ‘expect’, ‘guidance’, group’s activities and is current at the date of this presentation. It is informatio